M&G Real Estate has acquired a distribution warehouse in Belvedere, Kent for GBP48.4m reflecting a yield of 5.85 per cent.
The property was purchased on behalf of the M&G Property Portfolio.
Located in Isis Reach, the warehouse provides a total of 346,211 sq ft of high quality space and is let on two separate co-terminous leases to Iron Mountain (UK) Ltd until 24 December 2031. Current rent is approximately GBP3m per annum, equating to GBP8.67 per sq ft, subject to annual fixed uplifts of three per cent.
Situated 15 miles west of central London in the London Borough of Bexley, Belvedere is an established industrial area and a cost effective logistics location for companies seeking a base within the wider Greater London/M25 area. It offers local and national road links and is within easy reach of the port of Dover.
The GBP2.3bn M&G Property Portfolio is a bricks and mortar fund, which invests in UK commercial property and is aimed at private investors. It is managed by Fiona Rowley and Justin Upton of M&G Real Estate.
Upton says: “This is our fourth distribution warehouse purchase this year. The property is well specified, is located in Greater London and benefits from a stable long income stream with annual fixed increases providing attractive returns.”
M&G Real Estate was represented by Dowley Turner Real Estate.